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Oil prices skid amid global stock market slump, swelling U.S. supply

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - prices fell 1 percent on Wednesday, weighed down by swelling U.S. inventories and a plunge in global stock markets as warned of increasing economic headwinds.

International Brent futures were at $61.37 per barrel at 0240 GMT, down 71 cents, or 1.1 percent from their last close.

U.S. Intermediate (WTI) crude futures were at $52.64 per barrel, down 61 cents, or 1.1 percent, from their last close.

prices were pressured by a weekly report from the (API) that said U.S. crude inventories rose by 5.4 million barrels in the week to Nov. 30, to 448 million barrels, in a sign that U.S. are in a growing glut.

and inventory data is due later on Wednesday.

More broadly, the slide in U.S. oil followed a tumble in global stock markets on Tuesday, with investors worried about the threat of a widespread economic slowdown.

Key to the global economic outlook will be whether the and can resolve their trade disputes. and announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs.

But U.S. threatened on Tuesday to place "major tariffs" on Chinese goods imported into the if his administration didn't reach a desirable deal with

In an unusual move, China's state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay "high attention" to the impact on employment from increasing economic headwinds.

of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown.

The said it expected Brent and WTI prices to average $70 and $59 per barrel respectively in 2019.

Brent and WTI have averaged $72.80 and $66.10 per barrel so far this year.

(Reporting by Gloystein; Editing by Joseph Radford)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 08:32 IST
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